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I am going to buy a plot, the promoter ask me send the money to their account
1 week ago
I am going to buy a plot, the promoter ask me send the money to their account instead of land owner, and on registration he ask me to give cash and not accepting online payment.
A.Dear Client,
In the real estate sector, a Joint Development Agreement (JDA) is a legal contract between the Landowner and the Promoter, outlining terms and conditions, including the distribution of shares in the developed property. The Landowner typically grants the Promoter Power of Attorney to undertake necessary development activities. The Promoter sells their share through an Agreement to Sale with the buyer, and final sale deeds are executed upon receipt of full payment. Prior to executing an Agreement to Sale, the Promoter cannot demand earnest money exceeding Rs. 2 Lakhs per day, as per Section 269ST of the Income Tax Act, which limits cash transactions. Failure to comply may result in penalties under Section 271DA. Therefore, any demand for cash payment beyond this limit by the Promoter is unlawful.
In the real estate sector, a Joint Development Agreement (JDA) is a legal contract between the Landowner and the Promoter, outlining terms and conditions, including the distribution of shares in the developed property. The Landowner typically grants the Promoter Power of Attorney to undertake necessary development activities. The Promoter sells their share through an Agreement to Sale with the buyer, and final sale deeds are executed upon receipt of full payment. Prior to executing an Agreement to Sale, the Promoter cannot demand earnest money exceeding Rs. 2 Lakhs per day, as per Section 269ST of the Income Tax Act, which limits cash transactions. Failure to comply may result in penalties under Section 271DA. Therefore, any demand for cash payment beyond this limit by the Promoter is unlawful.
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A.Dear Client,
In the real estate business, a Joint Development Agreement(JDA) is executed between the Landowner and the Promoter specifying therein all the terms and conditions and the allocation of a percentage or portion of the share of both the parties in the developed property. The Landowner also executes a Power of Attorney to the Promoter empowering him to do all the necessary activities in connection with the development of the land. The promoter sells his share in the said property on the execution of an Agreement to Sale with the prospective buyer and the final deed of sale is executed between all the parties on receipt of full consideration money from the Buyer. So, until and unless an Agreement to Sale is executed between the Promoter and the Buyer, the Promoter cannot demand the earnest money/advance against the agreed consideration money from the Buyer. The registration of the property is now done online in almost all the states across the country and the payment of stamp duty and registration fees are also made online mode through the payment gateway of the Registration Deptt. Section 269ST was inserted in the Income Tax Act imposing restrictions on a cash transaction limited to Rs.2 Lakhs per day. Section 269ST states that no person shall receive an amount of Rs 2 Lakh or more in a day. In case of failure to comply with provisions of section 269ST, a penalty amount equal to the amount of receipt is payable by the seller under section 271DA of the Income Tax Act. Therefore, the demand of the Promoter asking the property buyer for cash payment beyond the threshold limit is illegal and impermissible under the law.
In the real estate business, a Joint Development Agreement(JDA) is executed between the Landowner and the Promoter specifying therein all the terms and conditions and the allocation of a percentage or portion of the share of both the parties in the developed property. The Landowner also executes a Power of Attorney to the Promoter empowering him to do all the necessary activities in connection with the development of the land. The promoter sells his share in the said property on the execution of an Agreement to Sale with the prospective buyer and the final deed of sale is executed between all the parties on receipt of full consideration money from the Buyer. So, until and unless an Agreement to Sale is executed between the Promoter and the Buyer, the Promoter cannot demand the earnest money/advance against the agreed consideration money from the Buyer. The registration of the property is now done online in almost all the states across the country and the payment of stamp duty and registration fees are also made online mode through the payment gateway of the Registration Deptt. Section 269ST was inserted in the Income Tax Act imposing restrictions on a cash transaction limited to Rs.2 Lakhs per day. Section 269ST states that no person shall receive an amount of Rs 2 Lakh or more in a day. In case of failure to comply with provisions of section 269ST, a penalty amount equal to the amount of receipt is payable by the seller under section 271DA of the Income Tax Act. Therefore, the demand of the Promoter asking the property buyer for cash payment beyond the threshold limit is illegal and impermissible under the law.
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